Nokia unveils first Windows phones

Nokia introduced the first two Windows Phone-based devices, the Nokia  Lumia 800 and Nokia Lumia 710, Windows Phone 7.5 Mango, at Nokia World in London on Wednesday (Oct. 26).


The upper end 800 Lumia with 3.7inch AMOLED screen, 1.4 GHz processor, 8megapixel Carl Zeiss camera and 16GB embedded memory targeted to compete with the likes of Apple and the iPhone 4S Samsung Galaxy S II, while a 710 Lumia 5megapixel camera and 8 GB built-in memory is more focused on the mid-tier segment. Both phones have a battery 1450MAh.

"This is a sleek, well designed phone, with a best in class camera and it has some strong key selling points," says IDC Francisco Jeronimo of Lumia 800, although he admitted that the phone may have difficulty competing in a market where Android and iOS still dominates.

The Lumia 710, he said, was more of a dark horse in the mid-tier segment with a unit was not expected until the second quarter of 2012 surprised.

"This is the most affordable 1.4-GHz processor unit, a mid-price tier unit with high end specs," he said.

Jeronimo said he felt Nokia had in the past year "a long way to go" and notes that Stephen Elop's reign as CEO and company "180-degree" change in strategy seems to be bearing fruit.

"Stephen Elop joined as CEO of the largest phone maker in the world, a new strategy and a new paradigm for Nokia, executed it and more than exceeded expectations by delivering not just one but two new Windows devices," he said, adding "Nokia looks to what was missing for years, to speed match the pace of the market."

Not all analysts were as impressed as Jeronimo, but Jack Gold of Gold Associates postulate that Nokia had missed a chance at the event, and still had not shown the level of regeneration is needed to run the company.

"I am left with many questions after the announcements. How do the new units in a diverse environment fit in a corporate environment? Where is the company the tools to install, activate and manage safe? What Nokia add value to the top flight Windows Phone? What did they do for Windows Phone platform to improve what Microsoft does? Nokia seemed once again to show that they understand how attractive hardware, but fell short range of services that they could discern market, especially with important business user, "Gold said.

"Samsung is a great Windows phone by HTC. Why would a consumer choose a Nokia device?" he added.

Ironically, Jeronimo counters that they want from Samsung and HTC just may be what Nokia needs to increase sales to help by raising the profile of the Windows operating system, which currently owns only 2 percent of the smartphone market.

IDC estimates that as a result of established brands like Samsung, HTC and LG devices with the push Windows Phone operating system, Microsoft's mobile software needs to grow a market share of 11 percent in 2012 to be seen and perhaps the second largest smartphone operating in 2015 with 20 percent market share, behind Android and iOS forward.

These predictions, but will likely depend on the delivery of Nokia devices in the U.S. market. The Lumia 800 and 710 will apparently only available in selected markets in Europe, with the company the company on a U.S. launch until early next year when LTE stabilizes.

Microsoft's restrictive policy on changing the operating system's user interface can make it difficult for handset manufacturers to offer based on their Windows phone that could make it a hard sell for consumers to distinguish.

"Nokia needs to leverage its expertise in hardware, but differentiation will come from their unique services that other vendors can not easily match," said Jeronimo. Gold, however, says that Nokia still has not shown how it adds value to the standard Microsoft OS and launch of the premium price (420 euros, or around Rs.27, 000 ($ 599) for intervention) is risky in a market where the iPhone 4S will cost the same.

"Nokia is competing against the market leaders in almost the same price. There is no benefit acquired by Nokia in a bid to return to the market at a reasonable price with a premium product," says Gold.

In fact, Nokia has lost significant share in the smartphone segment since 2007 and Jeronimo notes, "It will be much more than just a few Nokia phones to take to bring back."

The new devices launched today, can be a "good first step" in the opinion of Jeronimo and more clearly a sign that Nokia is "culture, reintegration of change and focus on growth."

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